the morning new' subscriber content strategy

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A. H. Belo Cor p oration The Dallas Morning News Subscriber Content Strategy April 30, 2012 © 2012 Dallas Morning News, Inc. April 2012 A. H. Belo Corporation | April 2012 A. H. Belo Corporation |

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Page 1: The Morning New' Subscriber Content Strategy

A. H. Belo Corporationp

The Dallas Morning NewsSubscriber Content Strategy

April 30, 2012

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation |

Page 2: The Morning New' Subscriber Content Strategy

Safe Harbor Statement

Safe Harbor Statement: Statements in this communication concerning A. H. Belo Corporation’s (the “Company’s”)business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends, capitalexpenditures, investments, impairments, pension plan contributions, real estate sales, future financings, and otherfinancial and non-financial items that are not historical facts, are "forward-looking statements“ as the term is definedunder applicable federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factorsthat could cause actual results to differ materially from those statements.that could cause actual results to differ materially from those statements.

Such risks, uncertainties and factors include, but are not limited to, changes in capital market conditions and prospects,and other factors such as changes in advertising demand and newsprint prices; newspaper circulation trends and othercirculation matters, including changes in readership methods, patterns and demography, and audits and related actionsby the Audit Bureau of Circulations; challenges implementing increased subscription pricing and new pricing structures;challenges in achieving expense reduction goals and on schedule and the resulting potential effects on operations;challenges in achieving expense reduction goals, and on schedule, and the resulting potential effects on operations;technological changes; development of Internet commerce; industry cycles; changes in pricing or other actions byexisting and new competitors and suppliers; labor relations; regulatory, tax and legal changes; adoption of newaccounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or otheraccounting standard-setting bodies or authorities; the effects of Company acquisitions, dispositions, co-owned ventures,and investments; pension plan matters; general economic conditions and changes in interest rates; significant armed

fli t d th f t b d t l ll th i k d ib d i th C ' A l R t Fconflict; and other factors beyond our control, as well as other risks described in the Company's Annual Report on Form10-K for the year ended December 31, 2011 and other public disclosures and filings with the Securities and ExchangeCommission.

Non-GAAP Measures: This presentation includes non-GAAP financial measures. The Company uses non-GAAP financialmeasures in internal analyses as supplemental measures of the Company’s financial performance and to assist witheasu es te a a a yses as supp e e ta easu es o t e Co pa y s a c a pe o a ce a d to ass st tperformance comparisons against its peer group of companies and other decisions. Non-GAAP measures are alsocommon alternative measures of performance used by investors, financial analysts and rating agencies to evaluatefinancial performance. Non-GAAP measures should not be considered in isolation or as a substitute for cash flowsprovided by operating activities or other income or cash flow data prepared in accordance with GAAP. Non-GAAPmeasures presented herein may not be comparable to similarly-titled measures of other companies. Reconciliations tothe most directly comparable financial measures presented in accordance with GAAP are provided in the Company’s April

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation |

the most directly comparable financial measures presented in accordance with GAAP are provided in the Company’s April30, 2012 press release and on the Company’s website (ahbelo.com) under the Investor Relations section.

Circulation Measures: Stated and implied circulation numbers contained in this presentation are Company estimates.

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Page 3: The Morning New' Subscriber Content Strategy

Subscriber Content Overview

• Subscriber Content is original and proprietary content generated by The Dallas Morning News’ award-winning newsroom

• Subscriber Content is exclusive to The Dallas Morning News

• Subscriber Content is available in our print newspaper, in our eEditions, on dallasnews.com, and on our tablet and smartphone applications

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation | 3

Page 4: The Morning New' Subscriber Content Strategy

Subscriber Content Examples

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation | 4

Page 5: The Morning New' Subscriber Content Strategy

Subscriber Content: 2012 Objectives

• Build and retain high-quality print and digital audiences

ObjectivesImprove and Expand Digital Product Portfolio• Completely overhaul Dallasnews.com to improve

Supporting Activities

the user experience• Re-design Guidelive.com• Expand neighborsgo to digital microsites• Launch a new tablet product

D l dditi l i h iPh d

• Increase the number of print subscribers

• Develop additional niche iPhone and Android apps and e-books

• Simplify the process that print subscribers use to Increase the number of print subscribers activating their digital accounts

p y p pactivate their digital accounts online

• Initiate new marketing campaigns to remind print subscribers to activate their digital accounts

• Improve the conversion rate of digital non-subscribers into print or digital-only subscribers

• Complete a new price elasticity study to identify the optimal home delivery and digital bundle price points and the cross-elasticities between them

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation |

between them• Simplify the process that digital non-subscribers

use to sign up for print or digital-only subscriptions

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Page 6: The Morning New' Subscriber Content Strategy

Subscriber Content: 2012 Objectives

• Monetize digital audiences

ObjectivesIncrease Banner Advertising Revenue• Increase the availability of Dallasnews.com

Supporting Activities

inventory to premium ad networks • Increase content and inventory in high-demand

categories (e.g., entertainment, finance, travel)• Continue to monetize the growth in

t h d t bl t t ffismartphone and tablet traffic • Increase sales of third party ad inventory

(e.g., inventory on Yahoo! websites)

Increase Revenue From Other ProductsIncrease Revenue From Other Products• Sell into the re-designed real estate portal • Hire sales specialists for search engine

marketing, video, email and social media marketing g

• Drive sales at 508 Digital, The Morning News’ digital marketing solutions business for small and medium businesses

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation |

• Support these initiatives and others with $4 million of marketing investment in 2012

• Brand marketing campaigns• Targeted marketing campaigns

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Page 7: The Morning New' Subscriber Content Strategy

Digital Subscription Options

DescriptionSubscription

• Dallasnews.com

• eEdition (Web, iPad)

• The Dallas Morning News’ main website

• Digital replica of the print version of The Morning News

• iPad • News app specifically designed for the iPad

• iPhone

• Android

• News app specifically designed for the iPhone

• News app specifically designed for Android devices

• Digital bundle • Digital subscription with access to Subscriber Content across all supported devices

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation | 7

Page 8: The Morning New' Subscriber Content Strategy

Subscriber Content: Milestones in 2011

• Increased 7-day home delivery price from $30.00 to $33.95 per month beginning in January 2011

• Implemented Subscriber Content initiative across Dallasnews.com, eEdition, iPad and iPhone apps in March 2011. The Android app came later in the year

• For new subscribers, the 7-day home delivery price increased from $33.95 to $36.95 per month in October 2011. The majority of this incremental revenueis attributable to The Dallas Morning News beginning to charge new home d li b ib $1 8 h f h di i l b dldelivery subscribers $1.85 per month for the digital bundle

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation | 8

Page 9: The Morning New' Subscriber Content Strategy

Subscriber Content: Good News

• Objective #1: Determine the number of our print newspaper subscribers that value our digital products by requiring these subscribers to activate their online accounts by entering their print newspaper subscription information online (i.e., “authenticating”)

As of March 8 2012As of March 8, 2012- Unique authenticated digital accounts: Approximately 91K (or approximately 40% of the print subscription base for the six-month period ended March 31, 2012)

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation | 9

Page 10: The Morning New' Subscriber Content Strategy

Subscriber Content: Good News

• Objective #2: Determine if limiting access to our proprietary content online, in our eEditions, and in our apps, improves print subscription acquisition and/or retention rates

For the 55 weeks ended March 31, 2012- The retention rate for subscribers who authenticate is running more than 50% higher than

the retention rate for subscribers who do not authenticate

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation | 10

Page 11: The Morning New' Subscriber Content Strategy

Subscriber Content: Good News

• Objective #3: Determine the willingness of consumers to purchase digital subscriptions

As of March 8, 2012- Approximately 49K paid digital subscriptions

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation | 11

Page 12: The Morning New' Subscriber Content Strategy

Dallasnews.com: Monthly Averages

Actual(year ended March 31, 2012)

Actual(year ended March 31, 2011)

• Unique visitors • 5.0 million • 3.8 million

• Page views • 39 million • 30 million

Engagement(approximate)

• Frequency of use

• Session length (minutes)

• Minutes per user

• 2.1 • 8.6

• 18.0

• 2.0• 15.0

• 30.5

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation |

Minutes per user

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Page 13: The Morning New' Subscriber Content Strategy

Subscriber Content: 2012 Objectives

• Build and retain high-quality print and digital audiences

ObjectivesImprove and Expand Digital Product Portfolio• Completely overhaul Dallasnews.com to improve

Supporting Activities

the user experience• Re-design Guidelive.com• Expand neighborsgo to digital microsites• Launch a new tablet product

D l dditi l i h iPh d

• Increase the number of print subscribers

• Develop additional niche iPhone and Android apps and e-books

• Simplify the process that print subscribers use to Increase the number of print subscribers activating their digital accounts

p y p pactivate their digital accounts online

• Initiate new marketing campaigns to remind print subscribers to activate their digital accounts

• Improve the conversion rate of digital non-subscribers into print or digital-only subscribers

• Complete a new price elasticity study to identify the optimal home delivery and digital bundle price points and the cross-elasticities between them

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation |

between them• Simplify the process that digital non-subscribers

use to sign up for print or digital-only subscriptions

13

Page 14: The Morning New' Subscriber Content Strategy

Subscriber Content: 2012 Objectives

• Monetize digital audiences

ObjectivesIncrease Banner Advertising Revenue• Increase the availability of Dallasnews.com

Supporting Activities

inventory to premium ad networks • Increase content and inventory in high-demand

categories (e.g., entertainment, finance, travel)• Continue to monetize the growth in

t h d t bl t t ffismartphone and tablet traffic • Increase sales of third party ad inventory

(e.g., inventory on Yahoo! websites)

Increase Revenue From Other ProductsIncrease Revenue From Other Products• Sell into the re-designed real estate portal • Hire sales specialists for search engine

marketing, video, email and social media marketing g

• Drive sales at 508 Digital, The Morning News’ digital marketing solutions business for small and medium businesses

© 2012 Dallas Morning News, Inc. April 2012A. H. Belo Corporation | April 2012A. H. Belo Corporation |

• Support these initiatives and others with $4 million of marketing investment in 2012

• Brand marketing campaigns• Targeted marketing campaigns

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